Apple introduces a new series of iPhones every year, and if you suffer from serious FOMO, you likely want to upgrade with each iPhone release. But shelling out lump sums of nearly $1,000 (or even more) annually can quickly wear out your bank account and make you wonder if upgrading is worth it.
With Apple's iPhone Upgrade Program, you can spread the sting of an iPhone purchase across more manageable monthly payments and ensure you get the latest device every year. Keep reading to learn about the iPhone Upgrade Program and find out if it's right for you.
What Is the iPhone Upgrade Program?
At its most basic, the iPhone Upgrade Program is a no-interest loan for an iPhone and AppleCare+ (Apple's extended warranty) with the option to upgrade early. This early upgrade feature means you can get a newer model before you completely pay off your current iPhone.
You can pair your iPhone with any major carrier through the program, including AT&T, T-Mobile/Sprint, and Verizon. You can also switch between these carriers while in the program.
Note: The major carriers have upgrade programs separate from Apple's iPhone Upgrade Program. To join the iPhone Upgrade Program, you must go through Apple, not the carrier.
You can learn more about the individual carrier upgrade program in our guides:
How the iPhone Upgrade Program works
Here's a breakdown of how the iPhone Upgrade Program works:
- After deciding on which iPhone to purchase at an Apple retail store or the Apple website, you can choose to apply for the iPhone Upgrade program.
- Pending a credit check, if your application is accepted, you will receive a loan for the device to be paid off in 24 monthly installments. Apple will set up your phone to work with your carrier of choice.
- Once you make 12 monthly payments, you can trade in your current device for a new iPhone model.
- Your new phone will technically come with a new 24-month financing plan, resetting the upgrade cycle. After another 12 months of payments, you can upgrade again.
You do not need to upgrade your phone every year. You can keep your phone and make all 24 payments to wholly own it, giving you the option to bring your iPhone to MVNOs.
How much does the iPhone Upgrade Program cost?
The iPhone Upgrade Program's cost depends on your iPhone's price. Keep in mind that you're paying for the iPhone and AppleCare+. Monthly payments through the upgrade program will be higher than standard monthly payments outside the upgrade program.
With the iPhone 16 starting at $799, the iPhone Upgrade Program would cost $39.50/month. The higher the price of the iPhone, the larger the monthly payment. If you bought the base model iPhone one year and decided to upgrade to a higher-tier model the next year, you can expect your monthly payment to increase.
That said, remember it may be cheaper to upgrade to an older device. While they don't qualify for the iPhone Upgrade Program, older iPhones offer excellent specs at a cheaper price. The iPhone 15 starts at $699. You should compare the iPhone 16 and 15 models to see which one better fits your needs.
Is the iPhone Upgrade Program Right for Me?
Before joining the iPhone Upgrade Program, consider these pros and cons.
Pros:
- Manageable monthly payments
- Can easily get a new iPhone every year without paying big lump sums
- Flexibility to switch between major carriers
Cons:
- Forced to pay for AppleCare+
- Strong credit score required
- Can't switch to MVNOs without paying off the phone
The iPhone Upgrade Program could be right for you if you always want the newest iPhone available. You'll pay relatively low monthly payments instead of several hundred dollars at once. Plus, it gives you an easy route to annually upgrade your iPhone and the flexibility to switch between the major carriers whenever you please.
On the other hand, if you want even more flexibility in choosing between carriers outside of the big three, the iPhone Upgrade Program may not be for you. You'll have to pay off the remainder of your phone before you can switch carriers. You are probably better off buying your phone outright and only upgrading when you need a new phone.
Also, understand that you are not just paying for the phone. AppleCare+ is not optional with the upgrade program, and your monthly payments include this fee. If you are the type of person who does not typically buy extended warranties, you might not like being part of the upgrade program.
If you are worried about your credit, be aware that you will need to go through a credit check, and Apple's banking partner seems to require a high credit score for approval. If you're curious about installment plans, learn if you can pay off your financed phone early.
How Do I Sign Up for the iPhone Upgrade Program?
You can apply for the iPhone Upgrade Program when you buy an iPhone from an Apple store or the Apple website.
The salesperson will walk you through the process at an Apple retail store. When purchasing online, choose the model you want to purchase, select the iPhone Upgrade Program option, and click on “I'd like to enroll.” Then, follow the prompts to complete your application and purchase.iPhone Deals
If you’re not interested in the Apple iPhone Upgrade Program, one of the best ways to get a new iPhone is by taking advantage of iPhone deals from the major carriers. There's a good chance you can get a new iPhone by trading in your current phone. Check out these current iPhone deals:
iPhone 14 128GB Plans
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#1
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Tello
Unlimited Text, 300 Minutes, and 2GB Plan
$8.00/mo
+ $449 Upfront
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#2
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GoTalk Wireless
SafeSim Super Lite Consumer Plan
$10.00/mo
$30.00 advance payment for 3 months (equals to $10.00/month)
+ $799 Upfront
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#3
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Visible
$25 Visible Plan
$25.00/mo
Taxes & Fees included
+ $629 Upfront
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#4
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Verizon
15GB Prepaid Phone Plan
$35.00/mo
$45 without AutoPay | AutoPay discount applies after 1st month
+ $629.99 Upfront
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iPhone Upgrade Program Frequently Asked Questions
Is the iPhone Upgrade Program worth it?
If you want a new iPhone every year, AppleCare+ coverage, and the flexibility to switch between the major carriers, the iPhone Upgrade Program might be worth it for you.
How can I get a free iPhone upgrade?
Your best bet for getting a free iPhone upgrade is dealing directly with a major carrier. You will likely have to trade in your completely paid-off phone and agree to a finance plan with the new carrier. That carrier will apply monthly credits to you, resolving your device payment.
How do you qualify for an iPhone Upgrade Program?
To qualify for the iPhone Upgrade Program, you will be subject to a credit check. Apple does not publish a minimum credit score requirement, but a low score will likely disqualify you from the program.
What is the cheapest way to upgrade my iPhone?
The cheapest way to upgrade your phone is by getting the most out of your current phone. Don't upgrade until your phone no longer meets your needs or no longer works and cannot be repaired. It's important to understand that the iPhone Upgrade Program is not a discount program. You are still paying a lot towards your phones; you just pay in small increments over time.
Angelo Ilumba
Senior Writer
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